Maryland sets sights on savings as CMS approves all-payer model expansion: 5 things to know

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CMS has approved the expansion of Maryland's all-payer hospital payment model, Republican Maryland Gov. Larry Hogan announced May 14.   

Here are five things to know.

1. Maryland currently uses the Maryland All-Payer Model Contract, which began Jan. 1, 2014, and expires at the end of this year. The approach was designed to reduce Maryland's annual Medicare spending while also increasing quality and improving health outcomes.

2. Officials said Maryland's current All-Payer Model has already saved Medicare more than $586 million through 2016, compared to national spending, and helped hospitals reduce unnecessary readmissions and hospital-acquired conditions while reducing hospital cost growth per capita.

3. Now, CMS has approved a new model, which is slated to take effect Jan. 1, 2019, and run through the end of 2023.

4. Officials anticipate the new Maryland Model will result in an additional $300 million in annual savings by 2023 and a total of $1 billion over five years.

5. The new model will achieve this through care coordination between hospital and nonhospital settings, as well as by investing in patient-focused care and enhancing primary care teams to improve outcomes for patients, among other things, the governor's announcement reads. ​

 

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